Chipmaker Marvell Technology is in advanced talks to buy Lumentum, which makes the lasers that move data between AI chips. Marvell would likely pay in shares, and the companies could announce a deal as soon as next week, according to Bloomberg.

Ryan Gould, Michelle F. Davis and David Carnevali reported the talks for Bloomberg on Wednesday, citing people familiar with the matter. Valida Pau separately reported for The Information that the companies have been in talks, citing one person. TNW has not independently verified the reports.

Lumentum is worth about $85bn and Marvell about $196bn, Bloomberg reported. Bloomberg could not learn the terms. A deal would be one of the largest ever in the technology industry, according to Bloomberg.

Not agreed yet

The Marvell Lumentum deal is not final. The companies have not reached an agreement, and the talks could still end without one, the people told Bloomberg. The timing could also change.…